Examining China All Access (Holdings) Limited’s (HKG:633) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess 633’s latest performance announced on 30 June 2018 and weigh these figures against its longer term trend and industry movements.
See our latest analysis for China All Access (Holdings)
Did 633’s recent performance beat its trend and industry?
633’s trailing twelve-month earnings (from 30 June 2018) of CN¥226m has declined by -1.1% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 0.4%, indicating the rate at which 633 is growing has slowed down. Why could this be happening? Let’s examine what’s transpiring with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, China All Access (Holdings) has fallen short of achieving a 20% return on equity (ROE), recording 5.7% instead. Furthermore, its return on assets (ROA) of 4.5% is below the HK Communications industry of 8.9%, indicating China All Access (Holdings)’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for China All Access (Holdings)’s debt level, has increased over the past 3 years from 0.3% to 7.1%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 47% to 39% over the past 5 years.
What does this mean?
China All Access (Holdings)’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors influencing its business. You should continue to research China All Access (Holdings) to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for 633’s future growth? Take a look at our free research report of analyst consensus for 633’s outlook.
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Financial Health: Are 633’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.